Citigroup or Chrysler?

Add comment December 12th, 2008

The U.S. Senate couldn’t come to an agreement over wage cuts to union auto workers Thursday night, quashing a $14 billion bailout of Detroit’s beleaguered car makers — Ford, General Motors and Chrysler.

The Bush administration, not wanting a massive meltdown of the auto industry as one of the final memories of its era, finally is considering using the $700 billion already approved to bailout failing financial firms.

Although $14 billion is a lot of money, already the Treasury has pumped $165.3 billion into 90 different banks or investment firms since the program was luanched on Oct. 28.

In fact, three banks received more than $14 billion individually and three others received $10 billion. The list:

* Citigroup Inc., $25 billion

* JPMorgan Chase & Co., $25 billion

* Bank of America Corp., $15 billion

*  The Goldman Sachs Group Inc., $10 billion

* Morgan Stanley, $10 billion

* Merrill Lynch & Co. Inc., $10 billion

Considering that there are still thousands of banks operating in the U.S. and the vast majority of the money deposited at these banks are FDIC insured, why are these companies more worthy than Chrysler, GM and Ford. If the carmakers go under, so do untold other supplier jobs and the only insurance most of the workers will have is several months worth of unemployment checks.

Do you agree or disagree? Send me an email at agary@rrstar.com letting me know. Please include your first and last name, what city or village you live in and what you do for a living.